Strong revenue and profit growth in the fourth quarter at both Group and Company level have enabled Teejay Lanka PLC to significantly minimise the impact of the pandemic-affected first quarter on the Group’s full-year results and end 2020-21 on a resilient footing.
Sri Lanka’s top textile manufacturer has reported profit before tax of Rs 902.8 million at Group level for the three months ending 31st March 2021, reflecting growth of 67% over the corresponding quarter of the previous year, with revenue growing 40% to Rs 9.770 billion, its highest quarterly revenue since inception.
Group profit after tax improved by an even more impressive 80% to Rs 760.8 million. Over the preceding three quarters of the year, Teejay Lanka posted a Q1 net loss of Rs 31.5 million, a net profit of Rs 631.3 million in Q2, and a net profit of Rs 778.4 million for Q3.
Revenue for the quarter at company level was up 56% to 6.297 billion, profit before tax grew by 52% to Rs 599.4 million and net profit increased by 65% to Rs 575 million, Teejay Lanka said in a filing with the Colombo Stock Exchange (CSE).
As reported in previous disclosures of quarterly results, the impact of the extreme adversity of the first quarter of the year continued to be visible in the Group’s cumulative results for the full year, albeit at substantially lower levels than witnessed at the preceding quarters. Group revenue for the year ending 31st March 2021 was down 4% to Rs 31.853 billion, in contrast to the 16% decline at the end of Q3.
Similarly, Group profit before tax for the year, at Rs 2.650 billion reflected a reduction of 6% as against 26% at the end of Q3, while profit after tax for the year declined by 10% to Rs 2.139 billion, improving significantly from 30% negative as at 31st December 2020.
Commenting on these results, Teejay Lanka chairman Bill Lam said: “I’m happy to announce that as a Group, Teejay has performed well in the 2020-21 financial year while battling with the pandemic. The Group was able to continue its operations at all three plants by adhering to government health protocols to cater to the world fashion and textile industry.”
He disclosed that the Group closed the year with a consolidated debt-free balance sheet, with a cash balance of Rs 6.2 billion.
Teejay Lanka CEO Pubudu De Silva said the Group had kept administration costs to Rs 1.356 billion which is a decline of 5%, while marketing and distribution costs were curtailed to Rs 148 million, a decline of 24%. An increase in yarn prices seen in the fourth quarter will continue to be prevalent in the first quarter of the new year, he said.
De Silva said the expansion of Teejay’s India plant is within the planned timeline despite the disruptions of the Covid-19 pandemic. The investment of US$ 26 million will result in the plant’s daily output increasing to 20 tons, and contribute to the Group’s target of becoming a US$ 300 million business. “Furthermore, our investments to modernise the plants in both India and Sri Lanka are in progress,” he said. “These investments made in these turbulent times will undoubtedly position Teejay as the leader in the textile arena of South Asia and will establish the company’s footprint to compete in the market in the new normal environment.”
Teejay Lanka was adjudged the Best Textile Exporter in Sri Lanka at the Presidential Export Awards presented by the Export Development Board (EDB) in 2019, moved up three places in the Business Today Top 30 companies ranking that year and was named among the 100 Most Respected Companies in Sri Lanka by LMD.
An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay has been listed on the Colombo Stock Exchange (CSE) since 2011 and was included in the S&P Top 20 Index in Sri Lanka. The Company has also been named among the Forbes ‘200 Best under a Billion in Asia’ and been recognised as the ‘International Textile Firm of the Year’ and the ‘International Dyer and Finisher’ by World Textile Institute, London.
Farmchemie becomes the first Sri Lankan owned company to receive FAMI-QS certification
Farmchemie has obtained FAMI-QS certification being the first Sri Lankan owned company certified with FAMI-QS. FAMI-QS stands for Feed Additive and pre-MIxture Quality System, which compromises the safety of animal feed and the quality of processed goods in accordance with European regulation no. 183/2005 on animal feed. Farmchemie is a BOI approved leading manufacturer and exporter of animal feed additives and nutritional supplements in Asia. Farmchemie is equipped with a state-of-the-art manufacturing facility from Bühler, Switzerland to offer quality assured manufacturing services for world-renowned European brands as well as own brands under Farmstar. Farmchemie has already established their presence in numerous international markets such as India, Bangladesh, Nepal, Kuwait, Lebanon, UAE, Egypt, Thailand, Vietnam, Malaysia, Mongolia, Cambodia and Uganda. FAMI-QS will enable them to expand their markets including the European and USA.
“We are honoured to announce that Farmchemie becomes the first Sri Lankan-owned company to be certified with FAMI-QS in combination with ISO 9001: 2015 and Good Manufacturing Practices certification for animal feeding. By attaining FAMI-QS, we are able to anticipate the expectations of our clients for safe, high-quality goods by lowering the related risk and enhancing the quality of onsite feeds via a supply chain that is properly guaranteed. For that Farmchemie implements measures for Feed Fraud and Feed Defense according to FAMI-QS supply chain integrity module V2. We would like to express our heartfelt appreciation to our customers and suppliers for their continued support and dedication. We look forward to elevating the firm to new heights in the coming months and years, as our aims will always be centered on quality assurance and innovative manufacturing.” Managing Director Uditha Wanigasinghe stated.
Exports Gold Award for Textrip
Textrip Pvt Ltd, the export arm of the Elasto Group, was recently recognized, as the gold award winner for rubber and rubber-based products, medium scale category at the NCE Export Awards ceremony held recently in Colombo. The Chairman and Managing Director of Elasto Group, Mangala Gunasekera accepted the award at the gala event held at Shangri La Hotel. The national export awards ceremony, organized by the National Chamber of Exporters (NCE), recognizes and rewards Sri Lankan exporters on their performance in the international market.
“We always strive to manufacture high-quality rubber-based goods, using the latest technology, adhering to the highest international standards, and showcasing Sri Lanka on the global stage. I would like to thank our clients, locally and internationally for their continuous trust and my staff for their hard work and dedication. They are the pillars of our success,” Managing Director of Elasto Group, Mangala Gunasekera stated. Textrip products have obtained a number of national and international quality standards such as ISO 9001:2015, ISO 14001:2015, CET, REACH and their products are designed to adhere to the ‘Wellness Wisdom’ theme. The company works with over 100 top sports and wellness brands and exports to more than 30 countries including European countries and the United States. TEXSTRETCH Progressive Exercise Resistance Bands is one of the most popular products of the company. The product is a great full-body workout solution for users of any level.
Sri Lanka Tourism returns to Spanish market after pandemic
Spain is one of the fastest recovery markets for Sri Lanka Tourism after the pandemic and participation in FITUR argues well for the much-needed exposure for Sri Lanka as an attractive tourism destination for Spanish-speaking countries, contributing in a substantive manner to its overall growth strategy. Sri Lanka Tourism made the presence with the 28 private sector companies at 43rd edition of FITUR International Travel Mart which was held from 18- 22 January 2023, Madrid, Spain. FITUR is the largest tourism event in the Spanish Market where all the sectors leisure, business and MICE tourism meet under one roof.
Sri Lanka Tourism stall was ceremonially opened by Mr.Chalaka Gajabahu ,Chairman of Sri Lanka Tourism Promotion Bureau and Honorary Consul of Sri Lanka in Barcelona, Mr. Agustin Llana and representatives of the leading private sector members of Sri Lanka.
Sri Lanka was able to attract high level of attention from the trade and travel visitors attended at the event. The Sri Lanka pavilion highlighted many aspects of its potential culture, beauty, Ayurveda and many more which Sri Lanka would offer as a tourism destination. Sri Lanka stand optimized the “So Sri Lanka” and “Visit Sri Lanka” vivid sights to attract the potential visitor segments. At the Sri Lanka pavilion, Ceylon tea was served for the visitors with a view of promoting Ceylon tea in the Spanish market.
On the sideline of the FITUR travel fair, Sri Lanka Tourism Promotion Burau officials participated at the events organized by the UNWTO. During the events, SLTPB officials met with the Mr.Harry Hwang , Director of Regional Department for Asia and the Pacific, UNWTO.As a result of discussions, Mr.Harry Hwang has shown the interest to hold the UNWTO Joint commission in Sri Lanka in 2024.
Meantime, the SLTPB and Sri Lanka Embassy of France also took steps to arrange Business Meetings, exclusive media interviews, Air Line meetings at the FITUR 2023. The Media gathering conducted during the fair created the great opportunity to highlight the updates on the destination and create awareness on the destination.
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